Samsung Electronics’ profit could cross $8.42 billion in Q3 2020

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Samsung Electronics’ operating profit is expected to cross KRW 10 trillion (around $8.42 billion) in the third quarter of 2020. Analysts expect the market to recover from the COVID-19 downfall that was experienced in Q1 and Q2 of this year. The South Korean firm could see recoveries in the sales of home appliances, smartphones, and TVs, and that could result in higher revenue and operating profit.

If the company’s forecast becomes a reality, it would be the first time in two years for Samsung Electronics’ operating profit to surpass the KRW 10 trillion mark. The South Korean tech giant is slated to announce its quarterly financial results for Q3 2020 next month. In a research note released yesterday, Hana Financial Investment analyst Kim Kyung-Min estimated the company’s operating profit for Q3 to be KRW 10.15 trillion. Forecasts from DB Financial Investment Co. and KB Securities also mention the possibility of Samsung’s operating profit surpassing KRW 10 trillion in the July-September quarter.

Analysts expect Samsung’s sales in the home appliances, smartphone, and TV segments to pick up despite the COVID-19 pandemic. In the smartphone segment, Samsung’s sales are expected to rise by 49% in Q3 2020 compared to Q2 2020. The company recently launched the Galaxy Note 20, Galaxy Note 20 Ultra, Galaxy Z Flip 5G, Galaxy Tab S7, Galaxy Tab S7+, and the Galaxy Z Fold 2. It even unveiled its cheapest 5G smartphone ever, the Galaxy A42 5G, and the affordable Galaxy M51.

Samsung’s QLED TV sales are expected to jump 40% in the current quarter when compared to Q2 2020. In the second quarter, the South Korean firm’s operating profit jumped 23.5% year-on-year to KRW 8.15 trillion despite its sales falling 5.6%. Its net profit was reported to be KRW 5.55 trillion, a jump of 7.23% from Q2 2019. Due to the boom in the semiconductor market, Samsung Electronics’ operating profit crossed the KRW 10 trillion mark for seven quarters continuously between Q2 2017 and Q4 2018.

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